The HMRC VAT Input Tax Manual at VIT 13700 concerns accountancy fees and states:

‘A sole trader's or a partnership's accountancy costs generally relate to a number of services provided to the taxpayer by the accountant. These may include:

general accountancy advice

VAT advice

income tax advice.

It is arguable that income tax is the responsibility of the sole trader or partner as an individual and is not strictly a business matter.

In order to avoid disputes over small amounts of tax our policy is that VAT on a sole trader's or a partnership's accountancy fees should usually be claimed in full subject to the normal rules.

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